EuroDry Ltd.

For Q2 2026, EuroDry reported total net revenues of $17.7 million, up 57% year over year from $11.3 million. Net income attributable to controlling shareholders was $6.59 million, or $2.32 per diluted share, versus a net loss of $3.1 million, or a loss of $1.12 per diluted share, in Q2 2025. Adjusted net income attributable to controlling shareholders was $6.95 million, or $2.44 per diluted share, and adjusted EBITDA was $11.71 million versus $1.9 million a year ago. For the first half of 2026, revenues were $30.5 million, up 49% year over year, net income was $6.8 million versus a loss of $6.8 million, and adjusted EBITDA was $16.6 million versus $0.85 million. Looking ahead, management said fixed-rate coverage is about 28% for the remainder of 2026, with about 50% covered in Q3 and about 6% in Q4; the slide-based EBITDA framework implied an annualized 2026 EBITDA contribution of $38.4 million under current forward assumptions.

The CEO framed the quarter as evidence that the market has recovered meaningfully, with rates at levels last seen in March 2024 for Supramax and Panamax time charters. He stressed that EuroDry is keeping flexibility by mixing index-linked charters with short fixed-rate coverage, while also using forward freight agreements to hedge some exposure. Strategically, he said the company prefers newbuildings over secondhand vessels at current elevated asset prices, citing better value, efficiency, lower emissions, and less maintenance risk.

The CFO highlighted strong financial leverage to higher charter rates, with Q2 average TCE at $20,398 per day versus $10,428 last year and operating expenses of $7,444 per vessel per day, slightly below last year’s $7,539. Cash breakeven for Q2 was $11,858 per vessel per day, while the 12-month all-in cash flow breakeven was estimated at $12,872 per day and EBITDA breakeven at $8,458 per day. She also noted debt of $98.1 million at June 30, 2026, an average margin of about 1.99%, and said the company is getting bank quotes closer to 1.5% on new financing; cash and other assets were about $37.5 million, and shareholders’ equity was about $100 million on a book basis.

Analysts focused on debt pricing, dry-docking timing, voyage expense volatility, operating cost pressure, chartering strategy, and whether the sector’s strength is more structural or cyclical. Management said the loan spread likely goes down from 1.99%, with recent quotes well below 2% and closer to 1.5%, and explained that dry-docking days shifted between quarters based on operational timing. On voyage expenses, management said positive numbers reflect fuel gains when oil prices rise and that a small negative number is more normal; on chartering, they would add more one-year coverage if rates are in the high teens, but stay more open if rates are mid-teens or lower.